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Mortgage rates this week

  • The average rate on a 30-year fixed mortgage is down to 6.89% this week
  • The average rate on a 15-year fixed mortgage is down to 6.17% this week

30-year fixed-rate mortgages

The average 30-year fixed mortgage rate decreased to 6.89% this week, down from last week's average of 6.95%. A year ago at this time, the 30-year rate averaged 6.96%.

15-year fixed-rate mortgages

The average 15-year mortgage rate decreased to 6.17%, down from an average of 6.25% last week. This time a year ago, the 15-year fixed rate averaged 6.30%.

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Mortgage rate trends

See how mortgage rates have changed over the last 3 months. The average 30-year mortgage rate hit a high of 7.22% the week of May 2nd, while the average 15-year mortgage rate topped out at 6.47%, the same week.

Week of 30-year mortgage rate 15-year mortgage rate
July 11, 2024 6.89% 6.17%
July 4, 2024 6.95% 6.25%
June 27, 2024 6.86% 6.16%
June 20, 2024 6.87% 6.13%
June 13, 2024 6.95% 6.17%
June 6, 2024 6.99% 6.29%
May 30, 2024 7.03% 6.36%
May 23, 2024 6.94% 6.24%
May 16, 2024 7.02% 6.28%
May 9, 2024 7.09% 6.38%
May 2, 2024 7.22% 6.47%
April 25, 2024 7.17% 6.44%
April 18, 2024 7.10% 6.39%
April 11, 2024 6.88% 6.16%

What’s behind current mortgage rate trends?

Inflation: The current inflation rate is 3.4%, compared to 3.5% last month. Mortgage lenders often demand higher interest rates to compensate for the eroding purchasing power of money due to inflation.

Federal funds rate: The federal funds rate is set by central bank officials, and it’s the interest rate that banks charge one another for borrowing money. Central banks adjust key interest rates to control inflation or stimulate the economy, and mortgage rates can follow suit. The current federal funds rate is at 5.25% to 5.50%.

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How mortgage rates affect your monthly payments

Say you’re buying a $500,000 property, have a 10% down payment and lock in a 30-year fixed mortgage at today’s average rate of 6.89%. Using a mortgage calculator, your monthly mortgage payment would be $3,779 a month, not including property taxes and insurance.

When buying a home, keep in mind that most lenders want you to keep your housing expenses at or under 30% of your gross income. Based on your income and expenses, use this calculator to find out how much home you could afford at today’s mortgage rates.

Mortgage application demand

Demand for mortgages decreased 0.2% this week from a week earlier, according to the Mortgage Bankers Association (MBA).

Meanwhile, the Refinance Index decreased 2% from the previous week and was 28% higher than the same week one year ago.

“The recent uptick in mortgage rates has slowed demand. Mortgage applications were essentially flat last week, as mortgage rates remained around 7 percent,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist.

“Purchase activity picked up slightly, driven primarily by increases in FHA and VA applications. Refinance applications decreased for the fourth consecutive week, in line with higher rates. Although home equity gains have been significant in recent years, most borrowers do not have much of an incentive to refinance at current rates.”

Should you buy a home at the current mortgage rates?

With the current 30-year fixed mortgage rate at 6.89%, you might wonder if now is the right time to buy a home. To help you make the best decision, ask yourself a few questions.

Am I financially stable? Reflect on your current financial situation, including your income, job stability, and overall financial health. Use a mortgage income calculator to determine what monthly mortgage payment you could comfortably afford. Remember to factor in property taxes, insurance, and maintenance costs.

Where do I see myself in 5, 10 years? Imagine yourself five, 10, 15 years from now. What does your career look like? Are you in the same city/state? Thinking about your long-term plans can help you determine if buying a home at today’s mortgage rates is a good idea or not.

How’s my credit score? Your credit score plays a significant role in the interest rate you'll be offered. If it’s on the low end, you may want to focus on boosting your score. With a higher credit score, you can qualify for the best mortgage rates available.

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Leslie Kennedy Senior Content Editor

Leslie Kennedy served as an editor at Thomson Reuters and for Star Media Group, followed by a number of years as a writer and editor and content manager in marketing communications, before returning to her editorial roots. She is a graduate of Humber College’s post-graduate journalism program and has been a professional writer and editor ever since.

Disclaimer

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